Other

You are here

Central Bank sells US$100m more to dealers

The Central Bank yesterday sold US$100 million to authorized dealers bring its total sales of foreign exchange to the banking system to US$790 million for the year so far. The bank said this latest intervention was “timed to offset anticipated lower inflows into the foreign exchange market in the coming weeks as a result of expected lower conversions by energy companies and to alleviate demand pressures ahead of the busy travel season”.

The bank said last month there was an excess of US$90 million in the banking system as the supply of foreign exchange exceeded demand. Supply was strong as energy companies converted US$483 to meet their quarterly tax obligations and Central Bank injected US$80 million into the system.

“The highly liquid foreign exchange market contributed to the weighted average selling rate of the US dollar appreciating to its highest level in four years,” the Central Bank said. The bank said it will continue to monitor conditions in the domestic foreign exchange market.